Genaissance Pharmaceuticals Reports First Quarter Results

Apr 25, 2001, 01:00 ET from Genaissance Pharmaceuticals, Inc.

    NEW HAVEN, Conn., April 25 /PRNewswire/ -- Genaissance Pharmaceuticals,
 Inc. (Nasdaq:   GNSC), a leader in applying population genomics, informatics
 technologies and clinical data to the development of personalized medicines,
 today reported its financial results for the first quarter ended
 March 31, 2001.
     For the three months ended March 31, 2001, revenues were $997,000,
 compared to $63,000 for the first quarter last year.  The revenue increase is
 attributed to the Company's commercialization activities including the first
 full quarter of our HAP(TM) Partnership with Janssen Research Foundation, a
 Johnson & Johnson Company.  Operating expenses for the quarter were $13.0
 million, of which $9.9 million were attributable to research and development.
 This compares to operating expenses of $8.5 million and research and
 development expenses of $3.0 million for the first quarter of 2000.  The
 increase in expenses reflects our focus on the development of our
 Mednostics(TM) Programs and commercialization of our technology.  The Company
 reported a net loss for the quarter of $11.2 million or $0.49 per share.
     As of March 31, 2001, the Company had cash, cash equivalents and
 marketable securities totaling $95.7 million.
     "Since the start of the year, Genaissance has made considerable progress
 with its Mednostics(TM) Programs -- the largest prospective effort to link a
 patient's response to marketed pharmaceutical products with genomic markers
 that are predictive of drug effectiveness and safety," said Dr. Gualberto
 Ruano, Chief Executive Officer of Genaissance.  "Patient recruitment and
 accrual is proceeding rapidly."
 
     Highlights of the quarter include:
 
     * The landmark STRENGTH Study was started with an investigators' meeting
       consisting of 60 physicians from across the country.  We are currently
       enrolling patients for this first clinical trial from our Mednostics(TM)
       Program, where we will study four of the leading lipid-lowering drugs
       currently on the market.  Dr. Antonio Gotto, the Joan and Suzanne Weiss
       Dean of the Medical School and Graduate School of Medical Sciences at
       Cornell University, has been named the Chair of the independent
       Steering Committee for the STRENGTH Study.  Dr. Gotto is an
       internationally-recognized expert in lipids and cardiovascular medicine.
 
     * Our commercialization efforts resulted in reaching nearly $1 million of
       revenue from our various partners and collaborators.
 
     * Our industry and professional outreach efforts were bolstered with two
       CME (continuing medical education) accredited symposia.  "Genetic
       Medicine: The New Frontier," held at the American Medical Association's
       National Leadership Conference, was attended by the leadership of
       medical societies from across the country; the "4th Annual
       Pharmacogenetics and Medicine Lectures: From Concept To Reality" was
       co-sponsored with the Yale University School of Medicine.  Both symposia
       focused attention on the fact that Genaissance is generating large
       amounts of proprietary clinical information and leads the effort to
       apply and commercialize genomics.
 
     * After working with Michael Lytton for many years as our external legal
       counsel for strategic alliances, we were delighted to add him to the
       Board of Directors.  In his new position as General Partner at Oxford
       Bioscience Partners, Michael will continue to provide Genaissance with
       guidance on partnering opportunities and alliance structures.
 
     "With our strong balance sheet, we continue to execute effectively on our
 clinical development plans and commercialization efforts.  Genaissance
 continues to garner much interest from the biopharmaceutical community and we
 believe that we are positioned uniquely to add value throughout the product
 development chain," said Dr. Ruano.
 
     Genaissance Pharmaceuticals, Inc. is a leader in applying population
 genomics, informatics and clinical data to the development of personalized
 medicines.  The Company discovers genomic markers that are predictive of drug
 efficacy and safety and markets its technology to the pharmaceutical industry
 as a complete solution for improving the development, marketing and
 prescribing of drugs.  Moving from discovery to commercial application,
 Genaissance has launched the largest prospective clinical trial ever conducted
 with the goal of allowing physicians to personalize prescriptions based on the
 DNA of the patient.  Genaissance is located in Science Park in New Haven,
 Connecticut.  Please visit http://www.genaissance.com for additional
 information.
 
     This press release contains forward-looking statements, including
 statements about: progress of Genaissance research programs; and the ability
 of Genaissance to apply its technologies to the development, marketing and
 prescribing of drugs.  Such statements are subject to certain factors, risks
 and uncertainties that may cause actual results, events and performance to
 differ materially from those referred to in such statements. These factors
 include the outcome of our clinical studies, the ability to convince the
 pharmaceutical industry to adopt our technologies, competition from
 pharmaceutical, biotechnology and diagnostics companies and those risks are
 identified in Genaissance's Annual Report on Form 10-K filed with the
 Securities and Exchange Commission on April 2, 2001.  The forward-looking
 statements contained herein represent the judgment of Genaissance as of the
 date of this release.  Genaissance disclaims any intent or obligation to
 update any forward-looking statement.
 
                       GENAISSANCE PHARMACEUTICALS, INC.
 
                            Statements of Operations
                                  (unaudited)
                     (In thousands, except per share data)
 
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     License Revenue                                     $997            $63
 
     Operating Expenses:
      Research and development                          9,877          2,991
      Selling, general and administrative               2,946          1,346
      Sublicense royalty obligations                       10            514
      Stock-based compensation                            125          3,632
      Total operating expenses                         12,958          8,483
 
     Interest Income                                    1,538            328
     Interest Expense                                    (769)          (557)
 
     Net loss                                         (11,192)        (8,649)
 
     Preferred stock dividends and accretion               --         (1,609)
 
     Beneficial conversion feature of
      Series B, KBH and C preferred stock                  --        (50,180)
 
     Net loss attributable to common
      shareholder, basic and diluted                 $(11,192)      $(60,438)
 
     Net loss per common shareholder,
      basic and diluted                                $(0.49)       $(21.49)
 
     Weighted average shares used in computing
      net loss per common share, basic and diluted     22,707          2,812
 
     Net loss per common share assuming
      conversion of outstanding shares of
      preferred stock and automatic exercise of
      warrants from date of original issuance,
      and excluding beneficial conversion                             $(6.37)
 
     Weighted average shares outstanding,
      assuming conversion and exercise from
      date of original issuance                                        9,192
 
 
                               Balance Sheet Data
                                 (in thousands)
                                  (unaudited)
                                                   Mar. 31, 2001  Dec. 31, 2000
     Cash, cash equivalents
      and marketable securities                       $95,747       $110,376
     Working capital                                   84,931         98,123
     Total Assets                                     131,083        143,892
     Stockholders' equity                              94,790        105,675
 
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X88839210
 
 

SOURCE Genaissance Pharmaceuticals, Inc.
    NEW HAVEN, Conn., April 25 /PRNewswire/ -- Genaissance Pharmaceuticals,
 Inc. (Nasdaq:   GNSC), a leader in applying population genomics, informatics
 technologies and clinical data to the development of personalized medicines,
 today reported its financial results for the first quarter ended
 March 31, 2001.
     For the three months ended March 31, 2001, revenues were $997,000,
 compared to $63,000 for the first quarter last year.  The revenue increase is
 attributed to the Company's commercialization activities including the first
 full quarter of our HAP(TM) Partnership with Janssen Research Foundation, a
 Johnson & Johnson Company.  Operating expenses for the quarter were $13.0
 million, of which $9.9 million were attributable to research and development.
 This compares to operating expenses of $8.5 million and research and
 development expenses of $3.0 million for the first quarter of 2000.  The
 increase in expenses reflects our focus on the development of our
 Mednostics(TM) Programs and commercialization of our technology.  The Company
 reported a net loss for the quarter of $11.2 million or $0.49 per share.
     As of March 31, 2001, the Company had cash, cash equivalents and
 marketable securities totaling $95.7 million.
     "Since the start of the year, Genaissance has made considerable progress
 with its Mednostics(TM) Programs -- the largest prospective effort to link a
 patient's response to marketed pharmaceutical products with genomic markers
 that are predictive of drug effectiveness and safety," said Dr. Gualberto
 Ruano, Chief Executive Officer of Genaissance.  "Patient recruitment and
 accrual is proceeding rapidly."
 
     Highlights of the quarter include:
 
     * The landmark STRENGTH Study was started with an investigators' meeting
       consisting of 60 physicians from across the country.  We are currently
       enrolling patients for this first clinical trial from our Mednostics(TM)
       Program, where we will study four of the leading lipid-lowering drugs
       currently on the market.  Dr. Antonio Gotto, the Joan and Suzanne Weiss
       Dean of the Medical School and Graduate School of Medical Sciences at
       Cornell University, has been named the Chair of the independent
       Steering Committee for the STRENGTH Study.  Dr. Gotto is an
       internationally-recognized expert in lipids and cardiovascular medicine.
 
     * Our commercialization efforts resulted in reaching nearly $1 million of
       revenue from our various partners and collaborators.
 
     * Our industry and professional outreach efforts were bolstered with two
       CME (continuing medical education) accredited symposia.  "Genetic
       Medicine: The New Frontier," held at the American Medical Association's
       National Leadership Conference, was attended by the leadership of
       medical societies from across the country; the "4th Annual
       Pharmacogenetics and Medicine Lectures: From Concept To Reality" was
       co-sponsored with the Yale University School of Medicine.  Both symposia
       focused attention on the fact that Genaissance is generating large
       amounts of proprietary clinical information and leads the effort to
       apply and commercialize genomics.
 
     * After working with Michael Lytton for many years as our external legal
       counsel for strategic alliances, we were delighted to add him to the
       Board of Directors.  In his new position as General Partner at Oxford
       Bioscience Partners, Michael will continue to provide Genaissance with
       guidance on partnering opportunities and alliance structures.
 
     "With our strong balance sheet, we continue to execute effectively on our
 clinical development plans and commercialization efforts.  Genaissance
 continues to garner much interest from the biopharmaceutical community and we
 believe that we are positioned uniquely to add value throughout the product
 development chain," said Dr. Ruano.
 
     Genaissance Pharmaceuticals, Inc. is a leader in applying population
 genomics, informatics and clinical data to the development of personalized
 medicines.  The Company discovers genomic markers that are predictive of drug
 efficacy and safety and markets its technology to the pharmaceutical industry
 as a complete solution for improving the development, marketing and
 prescribing of drugs.  Moving from discovery to commercial application,
 Genaissance has launched the largest prospective clinical trial ever conducted
 with the goal of allowing physicians to personalize prescriptions based on the
 DNA of the patient.  Genaissance is located in Science Park in New Haven,
 Connecticut.  Please visit http://www.genaissance.com for additional
 information.
 
     This press release contains forward-looking statements, including
 statements about: progress of Genaissance research programs; and the ability
 of Genaissance to apply its technologies to the development, marketing and
 prescribing of drugs.  Such statements are subject to certain factors, risks
 and uncertainties that may cause actual results, events and performance to
 differ materially from those referred to in such statements. These factors
 include the outcome of our clinical studies, the ability to convince the
 pharmaceutical industry to adopt our technologies, competition from
 pharmaceutical, biotechnology and diagnostics companies and those risks are
 identified in Genaissance's Annual Report on Form 10-K filed with the
 Securities and Exchange Commission on April 2, 2001.  The forward-looking
 statements contained herein represent the judgment of Genaissance as of the
 date of this release.  Genaissance disclaims any intent or obligation to
 update any forward-looking statement.
 
                       GENAISSANCE PHARMACEUTICALS, INC.
 
                            Statements of Operations
                                  (unaudited)
                     (In thousands, except per share data)
 
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     License Revenue                                     $997            $63
 
     Operating Expenses:
      Research and development                          9,877          2,991
      Selling, general and administrative               2,946          1,346
      Sublicense royalty obligations                       10            514
      Stock-based compensation                            125          3,632
      Total operating expenses                         12,958          8,483
 
     Interest Income                                    1,538            328
     Interest Expense                                    (769)          (557)
 
     Net loss                                         (11,192)        (8,649)
 
     Preferred stock dividends and accretion               --         (1,609)
 
     Beneficial conversion feature of
      Series B, KBH and C preferred stock                  --        (50,180)
 
     Net loss attributable to common
      shareholder, basic and diluted                 $(11,192)      $(60,438)
 
     Net loss per common shareholder,
      basic and diluted                                $(0.49)       $(21.49)
 
     Weighted average shares used in computing
      net loss per common share, basic and diluted     22,707          2,812
 
     Net loss per common share assuming
      conversion of outstanding shares of
      preferred stock and automatic exercise of
      warrants from date of original issuance,
      and excluding beneficial conversion                             $(6.37)
 
     Weighted average shares outstanding,
      assuming conversion and exercise from
      date of original issuance                                        9,192
 
 
                               Balance Sheet Data
                                 (in thousands)
                                  (unaudited)
                                                   Mar. 31, 2001  Dec. 31, 2000
     Cash, cash equivalents
      and marketable securities                       $95,747       $110,376
     Working capital                                   84,931         98,123
     Total Assets                                     131,083        143,892
     Stockholders' equity                              94,790        105,675
 
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X88839210
 
 SOURCE  Genaissance Pharmaceuticals, Inc.